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11:26
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Originally posted by madamswer
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While I am sure that the company's management have contingency plans in place to whatever the final recommendations of the Royal Commission on IOOF's business will be, the ultimate outworking on the company's earnings can't be known.35m shares have been borrowed and shorted .1.4m shares per day .40% [*] of Average Daily Volume would require in excess of 60 trading days to neutralise the net short position, so the better part of 3 months .[*] And participating in 40% of the trade day-in, day-out for 60 successive days would be no mean feat and, for practical purposes, would be very difficult to achieve without a meaningful impact on the share price. For context, 10% to 20% of ADV is what institutional brokers are typically mandated to do by their institutional clients when it comes to on-market buying or selling, depending on the stock in question.
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I think it is best to just forget what others are doing, and stick to your analysis and conclusions. I remember JBH had a huge number of shorts in Jun 2012 - around 25%, and the SP did have a huge turnaround around from that point, but at the end of December the shorts were still at 21%. However at the end of 2013 it was 7% short. That is a sample size of 1 to consider.
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